Oil giant BP has paused all of its tanker journeys through the Red Sea due to attacks by militants from Yemen.
It said it has witnessed a “deteriorating security situation” for its shipments.
The Iranian-backed Houthis have stepped up attacks on vessels in the Red Sea in recent days.
The rebels are understood to be targeting ships using the Bab el-Mandeb Strait, with the pro-Hamas group seeking to disrupt ships set for Israel.
On Monday, BP said: “In our trading and shipping business, as in all BP businesses, the safety and security of our people and those working on our behalf is BP’s priority.
“In light of the deteriorating security situation for shipping in the Red Sea, BP has decided to temporarily pause all transits through the Red Sea.
“We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”
It came as one of the world’s largest shipping firms, Evergreen Line, said it would no longer carry Israeli cargo via the Red Sea.
“For the safety of ships and crew, Evergreen Line has decided to temporarily stop accepting Israeli cargo with immediate effect, and has instructed its container ships to suspend navigation through the Red Sea until further notice,” it said in a statement.
The Houthis, who have declared their support for Hamas, are targeting ships travelling through the Bab el-Mandab Strait (also known as the “Gate of Grief”). The channel is 20 miles wide and is known for being perilous to navigate.
A number of shipping firms, such as Danish firm Maersk, had already paused container shipments through the area due to the surge in attacks.
The carrier said it would suspend its activity in the region following a near miss involving its Maersk Gibraltar ship on Thursday.
Oil and gas prices increased on Monday due to the potential disruption caused by the shipping issues.
Brent crude oil increased by around 1 per cent to $77.20 per barrel.
Meanwhile, wholesale oil prices rose more sharply, with the European benchmark for gas, Dutch front month futures, rising by over 7 per cent to more than €35 per MWh.
The shipping route is a key area for global trade, particularly for the transport of oil, grain and consumer goods from east Asia.
